Social-Economic Council
Encyclopedia
The Sociaal-Economische Raad (Social and Economic Council; SER) is a major economic advisory council of the Dutch government. Formally it heads a system of sector-based regulatory organizations
. It represents the social partners
trade union
s and employers' organization
s. It forms the core organization of the corporatist
and social market
economy
known as the polder model
and the main platform for social dialogue
.
. The social-democrats preferred to grant the government an important regulatory role in the economy, while the Catholics preferred to rely on the workings of a self-regulating market economy. A compromise was found in the corporatist model, in which both trade unions
and employers' organizations would form sector-based regulatory organizations. The SER headed this structure and served as important partner for the national government. The SER was very important in the reconstruction of the Netherlands after the Second World War.
In the 1950s and 60s the SER was particularly successful in ensuring economic growth by close cooperation between government, trade unions and employers' organizations. In the 1970s because of rising political polarization
and the oil crises
the SER was unable to resolve economic problems. In the 1980s the SER returned to the centre of the economic policy making, as it was the platform for dialogue between the government and its social partners
. In the 1990s the role of the SER began to change. The role of the sector-based regulatory organizations began to decline and the SER more and more took the role of an advisory council of government, In 1997 the Senate and House of Representatives were granted the right to submit enquiry commissions to the SER.
(8), CNV
(2) and the MHP
(1). The members of the employers' organizations are representatives from the three major employers' organizations: VNO-NCW
(7), MKB (3) and the LTO (1). The government-appointed members are normally professors of economics or related fields and they include representatives of the economic planning agency CPB
and the central bank DNB
. The board of the SER is formed by four members of each section. The chair of the organization is always a government appointee.
The SER heads and oversees the system of sector-based regulatory organizations. These organizations can like other governments, province
s, water board
s etc. enforce legislation for their members, in this case companies. The SER is financed by levies which companies pay to the chambers of commerce
. It spends €14 million a year.
Publiekrechtelijke Bedrijfsorganisatie
Publiekrechtelijke Bedrijfsorganisatie is a Dutch form of government. PBO is the whole of self-regulatory organizations for specific economic sectors....
. It represents the social partners
Social partners
The social partners are the trade unions and the employers engaged in social dialogue. The idea of social partnership is strongly founded in many European models of industrial relations and is now adopted across the European Union. At the European interprofessional level, the social partners are...
trade union
Trade union
A trade union, trades union or labor union is an organization of workers that have banded together to achieve common goals such as better working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts with...
s and employers' organization
Employers' organization
An employers' organization, employers' association or employers' federation is an association of employers. A trade union, which organizes employees is the opposite of an employers' organization...
s. It forms the core organization of the corporatist
Corporatism
Corporatism, also known as corporativism, is a system of economic, political, or social organization that involves association of the people of society into corporate groups, such as agricultural, business, ethnic, labor, military, patronage, or scientific affiliations, on the basis of common...
and social market
Social market economy
The social market economy is the main economic model used in West Germany after World War II. It is based on the economic philosophy of Ordoliberalism from the Freiburg School...
economy
Economy of the Netherlands
On the Index of Economic Freedom, the Netherlands is the 13th most laissez-faire capitalist economy out of 157 surveyed countries. At the time of writing the Netherlands is the 16th largest economy of the world. Between 1998 and 2000 annual economic growth averaged nearly 4%, well above the...
known as the polder model
Polder Model
The polder model is a term with uncertain origin that was first used to describe the internationally acclaimed Dutch version of consensus policy in economics, specifically in the 1980s and 1990s. However, the term was quickly adopted for a much wider meaning, for similar cases of consensus...
and the main platform for social dialogue
Social dialogue
A social dialogue can be any communication activity involving social partners intended to influence the arrangement and development of work related issues...
.
History
The SER was founded in 1950. It was founded after a long debate about the economic order of the Netherlands. The two main governing parties of the time, the Catholic KVP and the social-democratic PvdA had differing opinions on the subject. Both wanted to prevent the repetition of the economic crisis of the 1930sGreat Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
. The social-democrats preferred to grant the government an important regulatory role in the economy, while the Catholics preferred to rely on the workings of a self-regulating market economy. A compromise was found in the corporatist model, in which both trade unions
Trade unions in the Netherlands
Trade Unions play a major role in the corporatist Dutch economy.In 2001 about 25% of the Dutch people who were employed were organized in a union...
and employers' organizations would form sector-based regulatory organizations. The SER headed this structure and served as important partner for the national government. The SER was very important in the reconstruction of the Netherlands after the Second World War.
In the 1950s and 60s the SER was particularly successful in ensuring economic growth by close cooperation between government, trade unions and employers' organizations. In the 1970s because of rising political polarization
Polarization (politics)
In politics, polarization is the process by which the public opinion divides and goes to the extremes. It can also refer to when the extreme factions of a political party gain dominance in a party. In either case moderate voices often lose power and influence as a consequence.-Definitions of...
and the oil crises
1973 oil crisis
The 1973 oil crisis started in October 1973, when the members of Organization of Arab Petroleum Exporting Countries or the OAPEC proclaimed an oil embargo. This was "in response to the U.S. decision to re-supply the Israeli military" during the Yom Kippur war. It lasted until March 1974. With the...
the SER was unable to resolve economic problems. In the 1980s the SER returned to the centre of the economic policy making, as it was the platform for dialogue between the government and its social partners
Social partners
The social partners are the trade unions and the employers engaged in social dialogue. The idea of social partnership is strongly founded in many European models of industrial relations and is now adopted across the European Union. At the European interprofessional level, the social partners are...
. In the 1990s the role of the SER began to change. The role of the sector-based regulatory organizations began to decline and the SER more and more took the role of an advisory council of government, In 1997 the Senate and House of Representatives were granted the right to submit enquiry commissions to the SER.
Goals
The SER has three main goals for Dutch social-economic policy:- To promote balanced and sustainableSustainabilitySustainability is the capacity to endure. For humans, sustainability is the long-term maintenance of well being, which has environmental, economic, and social dimensions, and encompasses the concept of union, an interdependent relationship and mutual responsible position with all living and non...
economic growthEconomic growthIn economics, economic growth is defined as the increasing capacity of the economy to satisfy the wants of goods and services of the members of society. Economic growth is enabled by increases in productivity, which lowers the inputs for a given amount of output. Lowered costs increase demand...
; - To promote full employment;
- To promote a fair income distributionIncome distributionIn economics, income distribution is how a nation’s total economy is distributed amongst its population.Income distribution has always been a central concern of economic theory and economic policy...
.
Organization
The SER has thirty-three members. It consists of three sections, which each have eleven members in the council. These sections are trade unions, employers' organizations and government appointed members, the so-called Crown members. The trade union-members are appointed from the three major unions: FNVFederatie Nederlandse Vakbeweging
The Federatie Nederlandse Vakbeweging is a federation of trade unions of the Netherlands.-History:...
(8), CNV
Christelijk Nationaal Vakverbond
The Christelijk Nationaal Vakverbond is a federation of trade unions of the Netherlands.-History:...
(2) and the MHP
Federation of Managerial and Professional Staff Unions
-External links:* official site....
(1). The members of the employers' organizations are representatives from the three major employers' organizations: VNO-NCW
VNO-NCW
VNO-NCW is a Dutch employers' federation.-History:VNO-NCW was founded in 1996 as fusion of the Christian-democratic Nederlands Christelijk Werkgeversverbond , which was founded as fusion of the Protestant PCW and the Catholic NKW, and the liberal Verbond van Nederlandse Ondernemingen...
(7), MKB (3) and the LTO (1). The government-appointed members are normally professors of economics or related fields and they include representatives of the economic planning agency CPB
CPB (Netherlands)
The CPB Netherlands Bureau for Economic Policy Analysis is an independent Dutch government agency founded in 1945 by Jan Tinbergen. It is located in The Hague....
and the central bank DNB
De Nederlandsche Bank
De Nederlandsche Bank is the central bank of the Netherlands. It is part of the European System of Central Banks .-History:...
. The board of the SER is formed by four members of each section. The chair of the organization is always a government appointee.
The SER heads and oversees the system of sector-based regulatory organizations. These organizations can like other governments, province
Province
A province is a territorial unit, almost always an administrative division, within a country or state.-Etymology:The English word "province" is attested since about 1330 and derives from the 13th-century Old French "province," which itself comes from the Latin word "provincia," which referred to...
s, water board
Water board
A water board is a regional organisation that has very different functions from one country to another, ranging from flood control, water resources management, water charging and financing, and bulk water supply.-Philippines:The...
s etc. enforce legislation for their members, in this case companies. The SER is financed by levies which companies pay to the chambers of commerce
Chamber of commerce
A chamber of commerce is a form of business network, e.g., a local organization of businesses whose goal is to further the interests of businesses. Business owners in towns and cities form these local societies to advocate on behalf of the business community...
. It spends €14 million a year.
Chairs
- 1950-1958: Frans de Vries
- 1958-1964: Gerard Marius Verrijn Stuart
- 1964-1985: Jan Willem de Pous
- 1985-1996: Theo Quené
- 1996-1998: Klaas de VriesKlaas de Vries (politician)Klaas George de Vries is a member of the Dutch House of Representatives for the PvdA. De Vries has had a long political career: he has been a member of parliament for more than 15 years, he has been a minister, and was involved in forming both Kok cabinets.-Career before politics:After attending a...
- 1999-2006: Herman WijffelsHerman WijffelsH.H.F. "Herman" Wijffels is a Dutch economist and politician for the CDA. From 1981 to 1999 he worked for the Rabobank ultimately as chairman of the board of directors and from March 15, 1999 until April 1, 2006, he was chairman of the Social-Economic Council...
- 2006-now: Alexander Rinnooy KanAlexander Rinnooy KanAlexander Hendrik George Rinnooy Kan is a Dutch mathematician and business leader. The Dutch newspaper de Volkskrant named him the most influential man in the Netherlands in 2007, 2008 and 2009....